How Consumer Credit Counseling is Supposed to Work
A consumer credit counseling agency is typically a non-profit organization that is designed to help consumers with their debt through a debt management plan or with debt consolidation. Non-profit agencies are also supposed to provide credit or debt counseling to educate their clients on budgeting and other financial issues. Unfortunately, unethical and disreputable agencies do exist, as do companies that cannot competently help you with your debt. Just as you need to watch for potential scams when looking for someone to help you with your finances, you also need to look for help that is both professional and successful. Familiarize yourself with the credit counseling industry before you become its next client.
What You Can Expect with a CCC Agency
While every company is different, here is a little information about what you can expect when you sign up with a consumer credit counseling agency. Credit counselors should:
- Look over all your financial documents, including payroll slips, monthly bills, checking account statements, mortgage statements, and tax forms.
- Ask you about your living expenses and financial situation as part of their credit or debt counseling.
- Help you determine how much of your debt you can afford to repay each month.
- Contact your creditors to try to secure a lower interest rate or better terms.
- Send you a single bill each month, which goes to paying off your debts as efficiently as possible, putting all the money beyond the minimum payments towards paying off the highest interest debts first.
- Help you to set up and stick to a budget each month through credit or debt management plan counseling.
Be wary of consumer credit counselors who offer you big savings without understanding your financial situation. There is a limit to what these agencies can do and logically there should be a limit to what they can promise.
For professional help regarding debt settlement, get your free no obligation consultation with a Debt Shield consultant today.
